2007-04-05 19:10:38 · 7 answers · asked by Anonymous in Business & Finance ➔ Investing
Stay away from "individual stocks" if you are completely new to investing. It is a difficult game to master.
I would also visit vanguard.com you will learn anything and everything about mutual funds there.
Just my opinion, but if I had a chance to start over I would have gone with ETF's (exchange traded funds) instead of mutual funds.
2007-04-05 23:57:18 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Since you are new, try spreading your money out a little by getting a SPDR (verbally called a spider), or DIA (called a diamond).
These are also called ETFs, or exchange traded funds. They have trivial maintenance fees, and will diversify you quite well.
You can buy shares in SPDR (traded under the sybol SPY), or DIA from any broker. Since you are internet savy, I would say to go try out a cheap discount broker like Scottrade (minimal service), or Charles Schwab (more service). And avoid the full service brokers.
Try looking these things up yourself on Yahoo Finance. Buying a SPDR would be spreading our your money over the whole S&P500 index which is essentially the largest 500 companies in the USA. A DIA is the Dow Jones which is basically 30 very large companies in the USA representing the general health of the US.
Most mutual funds dont even do as well as the market, and I dont buy into gthier being safer then the market. When you are ready to invest on your own, try making a diversified portfolio of a dozen or so stocks. You can do this on paper only to get some practice.
2007-04-05 20:13:16 · answer #2 · answered by drlepton 2 · 0⤊ 0⤋
Many mutual funds have a substantial portion of their holdings in the stock market, so by investing in them you're doing both. If you have a fairly small amount, maybe a few thousand dollars or less, to invest, stock-based mutual funds can be good because they spread your money out among a number of different stocks.
2007-04-05 19:48:49 · answer #3 · answered by Judy 7 · 0⤊ 0⤋
A good portfolio should be diverse. Try a Van Guard mutual fund.
Do some research on IPOs (initial public offerings) and invest in those you think will give you a good return on your investment.
Blue chip stocks are historically the most solid investments you can make over the long run.
Stay away from penny stocks, and don't trade on margin.
Check out the Motley Fool.com. They have a plethora of information to help you decide what to do.
2007-04-05 21:05:19 · answer #4 · answered by Firespider 7 · 0⤊ 0⤋
I highly recommend you to invest in mutual funds first. Once you get more experienced with investing and more educated, stocks may bring a higher rate of return than the mutual funds.
2007-04-06 03:07:05 · answer #5 · answered by Go For Broke 3 · 0⤊ 0⤋
both can be good or bad. The stock market is more difficult becuase you need to consider so many different criteria. So if your not sure, pick a reputable mutual fund to invest in.
2007-04-05 19:44:53 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Depends on whether you are a new or experienced investor.....
If u r new investor try diversified equity funds and try to gain more knowledge about the functioning of the stock market.
If you are experienced investor you can still invest in mutual funds in a systematic manner over a long period and also invest directly to gain benefits.
2007-04-05 20:24:18 · answer #7 · answered by Santosh 3 · 0⤊ 0⤋